NEW YORK, Feb 13 (Reuters) - Morgan Stanley (MS.N), a U.S. investment bank expanding its physical holdings of energy commodities, in December acquired a 60 percent stake in Canada’s Olco Petroleum Group Inc., the bank disclosed in a filing Tuesday.
Morgan acquired the majority stake in Olco, a small marketer and distributor of refined oil products based in eastern Canada, on Dec. 15, according to its annual report filed with the U.S. Securities and Exchange Commission. Financial terms were not disclosed.
Olco supplies, trades, stores and distributes refined products, such as gasoline and diesel, in Canada.
Olco’s results will be included in the bank’s institutional securities division, where the commodities trading business in recent months made a series of acquisitions giving it access to physical oil, gas and other commodities underlying futures, swaps and other financial trades.
“This was an expansion and diversification of our physical oil business, along the same lines of TransMontaigne,” Morgan spokesman Mark Lake said.
Morgan Stanley in September acquired Denver-based TransMontaigne, which markets and distributed refined oil products throughout the United States, for $634 million. At the same time, the bank acquired Heidmar Group, which provide international shipping and U.S. marine logistics services.
The Olco deal was much smaller — the company had a market value of less than $10 million when it went private in 2005 — but will help support the firm’s North American energy trading business.
((Reporting by Joseph Giannone, editing by Derek Caney; Reuters messaging: email@example.com;+1 646 223 6184)) Keywords: MORGANSTANLEY OLCOPETROLEUM
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